Ahead of the Union Budget, the Telangana government has presented its wishlist in a pre-budget meeting chaired by Union Finance Minister Nirmala Sitharaman. The meeting was attended by Telangana Finance Minister Harish Rao, along with senior government officials from the Marri Chenna Reddy Human Resources Development Institute (MCHRDI).
In the meeting, Harish Rao asked Nirmala Sitharaman for pending dues and funds sanctioned under the 15th Finance Commission to be released. He stated that the Commission had granted Rs 723 crore to the state for various schemes, which it has lost out on as the recommendations have not been implemented. He asked for the grants to be sanctioned from here on, as well as release grants that had been sanctioned earlier.
The Telangana Finance Minister further pointed out that cess and surcharges are collected and not shared with the state in the grants being given to the state, and should be done away with. As the cess and surcharges do not add to the divisible tax pool, states are losing out on a huge chunk of revenues, Harish Rao said.
“The revenues from cess and surcharges can be compensated with an increase in central taxes, which in turn will improve states’ devolution of funds from central taxes,” he said.
In May, the Union government had provided an additional borrowing limit of upto 2% of GSDP to the states in view of the pandemic. Harish Rao called for this to be extended for two years, and that public investment should be encouraged.
He added that funds were granted under the Andhra Pradesh Reorganisation Act, and that backward districts of the state are to be granted funds, and demanded that pending amounts — from both this fiscal year as well as for the previous one — of upto Rs 900 crore be released to the state. He also called for the same assistance to be extended by five years.
State Finance Chief Secretary Ramakrsihna Rao, the state government's Financial Advisor GR Reddy and Finance Secretary Ronald Rose also participated in the pre-budget meeting.